‘It doesn’t matter what size they are; when they pertain to us, they’re all broke’
We last signed in with Pichinson almost precisely three years earlier when the start-up world was humming along. Even then, because of the large number of companies that get funded– and hence the variety of start-ups that usually don’t make it– Sherwood Partners was helping to unwind 2 to 4 business a week.
Now, as he told us in conversation last week, it’s unwinding 2 to 3 companies every day.
So who is shutting down, how does it all work and what can VCs anticipate to get in terms of a return in the age of the coronavirus?
Today, Pichinson says the shutdowns are throughout verticals and throughout phases. “We’re in business that raised $10 million to $25 million, to companies that raised up to $1.5 billion. It does not matter what size they are; when they pertain to us, they’re all broke. If we’re closing it down to tidy up and monetize what we can, they are essentially in the same position, whether they raised $20 million or they were as soon as a billion-dollar service.”
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.